When was the last time that you took a significant financial hit?
Personally… I’d go as far to say that…
I’ve taken a significant loss almost every year that I’ve been in business.
So, let me tell you…
It can be extremely tough to get back up and rebuild yourself.
Not to mention…
It also has an incredible way of bringing up embedded money issues from within 😬
And if you’re anything like me, you will instantly look at it through the lens of your own family’s security…
Which means we are no longer talking about just money
We are talking about impacting the entire world around you.
It’s not pretty
And while I’m reliving the emotions from my past,
Let me share one of my biggest financial hits I have had with you.
To give you context…
I lost money in my first year of business.
And, this story starts from my second year in business.
So… at the time… apps were the new trend.
Come to think about it…
It was basically the equivalent of AI today 😂
Being the business owner I was,
I went to an existing customer and asked them if they wanted me to build an app for them.
To my surprise…
They were interested!
All up, the project would be a $100,000 sale for me
It believed it would cost me around $50,000 to get the app built
And, I would then keep around $50,000 as my own profit.
At this point…
My heart was racing…
My greed glands were working overtime…
And my customer had already sent me the 50% deposit of $50,000.
Before I knew it, I was already plotting the story in my mind.
I would finally be the hero to Bianca (my partner).
And this was my chance to make back the money I lost from the prior year in business.
Essentially, I was already celebrating the moment before it even happened.
So… to continue on with our story…
I got referred to a software developer from a trusted friend of mine.
However, looking back…
I never used (or even saw) an app one of the developer’s had built below
I never confirmed that he was the right person for the build
And, I never confirmed if he had right skill set for this project.
Instead, I trusted that everything would just… work out
As you can probably guess what happens next…
After sending the developer the entire $50,000 (that I received from my customer) to build the app…
He went MIA (missing in action)
After realising that I was never going to get that money back…
I made the hard choice, and went back to my customer to refund their $50,000 deposit.
Essentially… I went from profiting $50,000 to now losing $100,000
( I paid the developer $50,000 who disappeared and refunded the customer $50,000 )
In the end, that completely wiped out all the profit I made from that second year of business.
And at the time, that loss completely crushed me.
I lost all self-belief in my abilities as a business owner…
My confidence was so damaged that I was discussing closing the business and applying for jobs.
So… trust me, I’ve been involved in some significant hits.
It was incredibly hard.
You don’t have to go through it alone!
In this week’s podcast episode, Grant and I are discussing on our financial hits and:
– How we pulled ourselves back up
– How we healed ourselves from those experiences
– As well as the mindset frames that we used and more…
So that you can make the best decisions and maximise the outcome going forward in your business.
P.S. Tell me some of the ways you have dealt with these experiences.
Or, shoot us the questions you have and I’ll try to convince Grant to reopen his wounds and answer them in a future episode!
00:00 Welcome to Business and Investing
02:50 Business comes with more risk
04:05 The number of financial hits we’ve encountered
07:02 Grant shares about his financial hit
13:48 How financial hits create self-doubt
15:39 Steps Grant took to get back up
23:20 Gaining confidence back
27:28 Leaning on other people during the process
27:56 My share of a financial hit
38:52 Giving time to heal is important
39:28 My take on getting back up from a financial hit
45:30 Two mindset frames I remind myself to get back up
48:08 Taking time to assess what caused the hit
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